FXstreet.com (Barcelona) - The Federal Reserve's Monetary Policy Committee has decided to leave its Fund Rate unchanged at 2%, as widely expected, after their monthly monetary policy meeting.

The Fed affirms that easing of monetary policy plus measures to support market liquidity should promote economic growth. Downside risks to growth, although still present have diminished somewhat, while upside risks to inflation have increased, the Bank reaffirms its commitment to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.

The bank affirms that economic activity continues growing supported partially by resilient household spending, although labour markets have softened, and credit markets remain under considerable stress. The bank warns about tighter credit conditions, the weakness of the housing market, and higher energy prices.

Inflation is expected to moderate later this year according to the Fed although, having in account the high energy prices uncertainty about inflation remains high.